Litecoin eyes $100 after ‘rare’ LTC price breakout

Litecoin (LTC) might rise one other 20% amid a uncommon pattern reversal breakout that has already resulted in LTC outperforming most crypto property in current days.

LTC’s not-so-bearish symmetrical triangle

LTC’s value broke out of what earlier gave the impression to be a bearish symmetrical triangle.

Symmetrical triangles are pattern continuation patterns, that means breaking out of their vary sometimes prompts the worth to maneuver within the route of their earlier pattern. 

Litecoin fashioned a symmetrical triangle sample between Might and November after dropping 70% to almost $40 within the prior buying and selling classes. Ideally, the LTC/USD pair might have resolved the sample by breaking beneath its decrease trendline.

However as a substitute, it broke above the higher trendline in early November, as proven beneath. Based on Edwards and Magee, the authors of Technical Evaluation of Inventory Development, the breakout transfer is uncommon, given solely 25% of symmetrical triangle breakouts have traditionally resulted in pattern reversals.

Litecoin adopted up with its symmetrical triangle reversal transfer decisively and now eyes a run-up towards $100, or one other 20% by December 2022.

This upside goal is measured after calculating the space between the triangle’s higher and decrease trendline and including the output to the breakout level (round $58 in Litecoin’s case).

Why is Litecoin value up?

Litecoin’s symmetrical triangle breakout transfer began in late October. It coincided with MoneyGram’s announcement that it will allow customers to buy, retailer, and use LTC alongside Bitcoin (BTC) and Ether (ETH) for funds.

The LTC breakout misplaced momentum because of the FTX collapse within the first week of November and its damaging impression on the broader crypto market. However, Litecoin resumed its upward pattern amid speculations about its reward halving in the summertime of 2023.

Associated: Litecoin hits fresh 2022 high versus Bitcoin — But will LTC price ‘halve’ before the halving?

“Litecoin tends to rally within the months main as much as the halving,” noted market analyst, The Digital Development, in his SeekingAlpha op-ed, including:

“Then, the worth tends to stabilize earlier than getting into a lengthier and extra substantial bull market. Then, round midway by means of the cycle, Litecoin enters a bearish/distribution part like Bitcoin.”

Litecoin’s value might attain $180 by July 2023 if the halving fractal performs out as supposed, as Cointelegraph coated here.

The bearish take

Conversely, Litecoin can see a short-term correction as its three-day relative power index (RSI) is popping “overbought.” The set off for the draw back transfer might be the RSI crossing above 70 from its present studying of 68, as proven beneath.

LTC’s value draw back goal involves be at round $40 within the occasion of a correction pattern, down about 50% from present value ranges.

This text doesn’t include funding recommendation or suggestions. Each funding and buying and selling transfer includes danger, and readers ought to conduct their very own analysis when making a choice.